Dortmunder Volksbank, a German bank, has launched a mobile payment service using a virtual credit card integrated into smartphones.

To use the smartphone credit card – dubbed the “ClassicCard Mobile” – customers must have the digital O2 Wallet and be using either the Samsung Galaxy S3 or Samsung Galaxy Ace 2 NFC-enabled smartphone. Payments must accept MasterCard PayPass.

The TSM (Trusted Service Manager) service is operated by Giesecke & Devrient in cooperation with systems integrator DG Verlag, which is a partner of cooperative banks as well as other institutions.

DG Verlag uses the TSM service to install and personalise the ClassicCard Mobile credit card on customers’ smartphones via a secure wireless connection, storing the card in a secure element on the SIM card.

For payments of more than EUR25, customers must also enter a PIN code to authorise the transaction.